- Foreign Exchange Reversal and Higher Taxes Drag Quantum Terminals Profit Lower
Quantum Terminals Plc reported a modest decline in half-year profit despite stronger revenue, a sharp reduction in administrative expenses and an almost fourfold increase in operating profit. The petroleum infrastructure company recorded profit after tax of GH¢20.75 million for the six months ended June 30, 2026, down 8.48% from GH¢22.67 million in the corresponding period of 2025.
Revenue increased by 4.97% to GH¢40.84 million from GH¢38.91 million, driven by premium charges and throughput fees generated from the storage and loading of liquefied petroleum gas.
However, direct operational costs rose much faster, increasing by 43.62% to GH¢5.88 million from GH¢4.10 million. Gross profit consequently advanced by only 0.42% to GH¢34.96 million.
The results show a significant improvement in Quantum Terminals’ underlying operating performance but also reveal how foreign-exchange movements, fair-value income and taxation continue to influence its final earnings.
General and administrative expenses fell by 51.27% to GH¢11.13 million from GH¢22.85 million, providing the largest support to profitability. Other income more than doubled to GH¢4.20 million from GH¢1.70 million, while total depreciation and amortisation remained broadly stable at about GH¢9.01 million.
These movements lifted earnings before interest and tax to GH¢19.01 million from GH¢4.74 million, an increase of 301.18%.
Calculated earnings before interest, tax, depreciation and amortisation nearly doubled to GH¢28.46 million from GH¢14.33 million, indicating a substantial strengthening in the cash-generating capacity of the company’s core terminal operations. The improvement did not fully translate into bottom-line growth because the finance and tax lines moved against the company.
Quantum Terminals recognised GH¢13.36 million in fair-value imputed interest income, up from GH¢11.13 million a year earlier. This income appears to relate to the accounting treatment of financial assets or receivables rather than cash interest received during the period. It accounted for approximately half of the company’s profit before tax, highlighting the importance of non-operational accounting income to reported earnings.
Finance costs declined by 36.85% to GH¢3.86 million, reflecting the reduction in the company’s long-term debt burden.
However, Quantum Terminals recorded a foreign-exchange loss of GH¢2.22 million, reversing a GH¢13.99 million gain in the first half of 2025. The swing of more than GH¢16.00 million in foreign-exchange performance offset much of the improvement in operating earnings.
Profit before tax nevertheless rose by 9.47% to GH¢26.72 million from GH¢24.41 million.
The decline in profit after tax was caused mainly by a significant increase in the corporate tax charge, which rose to GH¢5.64 million from GH¢1.41 million. Together with the Growth and Sustainability Levy of GH¢334,127, the higher tax expense reduced net profit to GH¢20.75 million.
Basic and diluted earnings per share fell to GH¢0.1886 from GH¢0.2061. Quantum Terminals’ revenue is generated mainly through premium charges and throughput fees.
Premium-charge income increased to GH¢33.30 million from GH¢31.72 million, while throughput fees rose to GH¢7.54 million from GH¢7.18 million. Direct wages and salaries were the largest component of operating costs, increasing by 56.86% to GH¢4.80 million from GH¢3.06 million.
Direct utilities also rose to GH¢336,440 from GH¢249,817, while meal and canteen costs declined slightly. Other income comprised GH¢2.55 million from residual gas and GH¢1.64 million in foreign-exchange gains recorded within that income category.
The company’s balance sheet strengthened during the period. Total assets rose by 3.98% to GH¢514.20 million from GH¢494.50 million, while total equity increased by 8.03% to GH¢400.27 million.
Total liabilities declined by 8.12% to GH¢113.92 million, leaving equity equivalent to approximately 77.84% of the asset base. Property, plant and equipment remained the company’s largest asset at GH¢284.78 million, down from GH¢300.03 million as depreciation exceeded new capital investment.
Quantum Terminals also reported a GH¢144.80 million non-current receivable from related parties, representing more than 28.00% of total assets. The balance included approximately GH¢100.59 million due from The Quantum Terminals Group Limited and GH¢46.37 million from Quantum Gas HoldCo Limited, less an impairment allowance of GH¢2.16 million.
The scale of related-party receivables remains a material feature of the balance sheet. Current amounts due from related parties surged to GH¢29.42 million from GH¢1.16 million, reflecting a substantial increase in funds or balances linked to entities within the wider corporate group.
Combined current and non-current related-party receivables amounted to about GH¢174.21 million, equivalent to approximately 33.88% of total assets. This concentration could expose Quantum Terminals to liquidity and credit risks if repayment depends heavily on the financial strength of related companies.
The company recognised impairment provisions against both current and non-current intercompany receivables, indicating management’s application of expected-credit-loss requirements.
Cash and bank balances increased by 53.99% to GH¢22.22 million, while current assets almost doubled to GH¢81.87 million from GH¢42.17 million. Current liabilities rose more rapidly, increasing to GH¢29.77 million from GH¢12.58 million.
The company nevertheless maintained a current ratio of approximately 2.75, suggesting it had more than sufficient reported current assets to cover short-term obligations.
Quantum Terminals made progress in reducing long-term indebtedness. Long-term debt declined by 60.45% to GH¢16.85 million from GH¢42.59 million. The balance included an EAIF loan facility and the remaining portion of a 10-year bond traded on the Ghana Fixed Income Market.
But short-term loans increased by 144.49% to GH¢19.12 million, partly because portions of the EAIF facility and GFIM bond moved closer to maturity and were reclassified as current obligations.
The reduction in overall debt is positive, though the shift towards short-term maturities increases the immediate refinancing and repayment burden.
Cash generation improved materially. Net cash from operating activities increased to GH¢15.54 million from GH¢3.83 million, supported by stronger operating earnings and lower tax and interest payments. The company spent GH¢1.83 million on property, plant and equipment and repaid GH¢11.04 million in borrowings.
After lease principal payments and exchange-rate effects, cash and cash equivalents increased to GH¢22.22 million from GH¢20.28 million at the beginning of the year. This stronger operating cash conversion distinguishes the period from companies that report accounting profits without corresponding liquidity growth.
Quantum Terminals’ half-year performance therefore presents two contrasting outcomes. Its core operations improved significantly, with administrative cost reductions driving a 301.18% increase in EBIT and a 98.62% rise in EBITDA.
Debt and finance costs also declined, while cash flow and equity strengthened. Yet net profit fell because of the reversal of the previous year’s foreign-exchange gain and a much larger corporate tax charge. Investors will also need to monitor the large concentration of assets in related-party receivables and the rise in short-term borrowing.
The underlying terminal business appears stronger than it was a year earlier. The next test is whether Quantum Terminals can sustain the lower cost base, convert intercompany balances into cash and manage upcoming debt repayments without allowing non-operational accounting items to dominate its reported earnings.
